+ All Categories
Home > Documents > I think it is time that the Hualapai Tribal Membership

I think it is time that the Hualapai Tribal Membership

Date post: 11-Feb-2022
Category:
Upload: others
View: 2 times
Download: 0 times
Share this document with a friend
14
Transcript

Dear Hualapai Tribal Membe s:

It is with deep sorrow that I need to share information with my fellow Tribal Members. When I was

sworn into office; I took an oath to uphold the US and Hualapai Constitution which includes the laws of the Hualapai Tribe. I understand there is a recall being conducted on me at this time. My term is up in

June so it really isn't necessa y. I will no longer be in office and seems my services are not wanted nor

required. It is bothering me that a lot of information is not being shared with the membership. Everything that is shared is based on opinion and not fact. There is talk of being on one side or another.

That concept does not sit well with me. I thought we were supposed to be working toward one purpose:

To serve the Hualapai Peopk.

I read all the legal document;, some more than 200 pages in length. There are shocking discoveries from

both sides. In trying to keep .in open mind, I look at both sides and what can actually be proven. I have

asked where the various amounts that are supposedly owed to us come from and where I can see the

figures. I am told they are estimations and summations. That will not hold up in court. This scares me as

a Tribal Council Member because we should be very sure of ourselves before we assert wrong doing. I

am very logical and analytical when it comes to the law. I want proof and documentation not just

opinion and emotion.

I think it is time that the Hualapai Tribal Membership actually is aware of what the Tribal Council does behind closed doors. I read cm face book a comment from a child who observed our community meeting

that we looked liked we are Mding things. We are hiding things. I was disciplined as a child for not telling

the truth. What are we teaching our future leaders? To be sneaky and lie?

I stated at the community meeting that this Eminent Domain Ordinance was Ex Parte. Meaning that it

was created after the fact to address a specific issue, namely the Skywalk. However, this ordinance is

lasting and can affect anyone on the reservation either privately or doing business. According to our

constitution, this is not legal nor is it legal anywhere else in the US to adopt a law to enforce a specific

issue. I voiced this very clearly and was scrutinized for my opinion which I can back up with facts. Now

my job and family are in jeopardy.

I continue to hear at the council and public meetings that Hualapai's are first and foremost. That is not

what I see. My own job has heen threatened and I am a Hualapai that has lived here 27 years. My family

is buried here and this is where I call home. I raised my children here and they know who they are. I

have close connections to m/ family and know who I am related to in the community. How many more

Hualapai people will this issi e continue to effect?

In closing, please continue to ask questions based on facts and documentation, not emotion and hidden

motives. People should not l>e hurting people on purpose. Our elders did not teach us to do that. My

grandmother Lois Willets Irv'in would not have approved of people being so mean. Thank you for your

time and energy in reading ny words.

Respectfully Submitted,

Sheri K YellowHawk, Tribal Member

ATTORNEY-CLIENT COMMUNICATION

ATTORNEY WORK PRODUCT

PRIVILEGED & CONFIDENTIAL

Gallagher & Kennedy P.A.

Law Offices

MEMORANDUM

TO: Hualapai Tribal Council

FROM: Paul Charlton, Terence W. Thompson and Glen Hallman

SUBJECT: Memorandum No. 3 to Hualapai Tribal Council re Skywalk Matters

DATE: February 8, 2011

Pursuant to the Council's meeting (in executive session) in our offices on Thursday,

January 27, 2011, we are preparing a detailed memorandum on the proposed course of action

discussed at that meeting. As contemplated, we anticipate delivering the memorandum to the

Council within approximately two weeks after that meeting.

In the meantime, we have received several communications from the two law firms

representing Mr. Jin's organizations. One of those communications purported to be a demand to

SNW for arbitration of amounts alleged to be owed to Y-Travel, one of Mr. Jin's affiliates. As

you will recall, neither the Tribe nor SNW has any contract with Y-Travel. In addition, as

instructed by the Council in early 2010, Y-Travel was demanded to cease and desist from

operating on the reservation without the permission of the Tribe. Accordingly, a response has

been sent to Mr. Jin's attorneys taking the position that that the arbitration demand was "void

and of no effect" (see attached). The response also reaffirms the Council's cease-and-desist

letter.

We subsequently received a second arbitration demand from Mr. Jin's attorney. We will

respond to it and take the position it is deficient and defective as well. However, at some point

we expect Mr. Jin's attorneys to initiate a lawsuit in the United States Federal Court seeking a

court order compelling arbitration.

We anticipate that Mr. Jin's attorneys will continue to take this adversarial and litigious

approach, which is clearly an abandonment of Mr. Jin's historical approach of conciliation and

amicable discussion. However, these actions by his attorneys do not interfere or interrupt the

proposed strategy discussed at our January meeting and which is the topic of the detailed

memorandum we will soon be providing the Council.

As always, please let us know if you have any questions or comments.

Memo No. 1 was our prior "Recent Developments" memo and Memo No. 2 was the "Alternative Legal Strategies"

memo.

Gallagher & Kennedy —— p. A.

LAW OFFICES

2575 EASTCAMELBACK ROAD

PHOENIX, ARIZONA 8S016-9225

GLEN HALLMAN PHONE: (602) 530-8000

DIRECT DIAL (602) 530-8471 FAX: (602) 530-8500

E-MAIL: [email protected] WWW.GKNET.COM

February 7, 2011

VIA FACSIMILE 702,792.9002

AND US MAIL

Mark G. Tratos

GREENBERG TRAURIG

3773 Howard Hughes Parkway, Suite 400 North

Las Vegas, NV 89169

Re: Hualapai Indian Nation: *Sa' Nyu Wa, Inc. - Skywalk

Dear Mr. Tratos:

This letter responds to your January 31, 2011 letter to my partner Terry

Thompson, purporting to serve a "Notice of Arbitration."

As your co-counsel Teddy Parker has surely informed you, he was informed

almost a year ago, on March 24, 2010, that it had come to the attention of the Hualapai

Tribal Council that a company known as Y-Travel, an affiliate of Mr, David Jin. was

unlawfully operating a shuttle service on the Hualapai Reservation without having

obtained prior permission to do so, The Council therefore immediately demanded that Y-

Travel cease and desist from such activities. Attached are Mr. Thompson's emails of

March 24, 2010 so informing Mr. Jin,

When you first introduced yourself via your January 11, 2011 letter, you indicated

that you were "representing Mr. Jin" as to the "Y-Travel matter." Given the prior cease-

and-desist letter, we assumed that Y-Travel was finally contemplating petitioning the

Tribe for permission to operate on the Reservation. However, if we understand your

letter of January 31, 2011 correctly, you are claiming that YTI wants to be rewarded for

unlawfully operating on the Reservation in violation of the Council's order.

Your purported "Notice of Arbitration" is in fact an attempt by Y-Travel - which

has no contract with the Tribe or any of its affiliates - to invoke the arbitration clause of a

contract with one of its affiliates, Grand Canyon Skywalk Development, LLC. As you

Mark G. Tratos

February 7,20 Jl

"Page 2

know, the only current agreements pertaining to shuttle service on the Reservation are the

Diamond. Bar and GCW shuttle agreements (the "2010 Shuttle Agreements"). Y-Travel

is not a party to the 2010 Shuttle Agreements. Also, of course, neither was Y-Travel a

party to the original 2003 Agreement. In any event, to the extent the 2003 Agreement

addressed employee shuttles, it was superseded by the 2010 Shuttle Agreements.

Accordingly, the Tribe's prior demand that Y-Travel cease and desist operations

on the Reservation is hereby reiterated. Any further unauthorized conducting of such

activities constitutes, among other things, trespass on the Reservation, and the Tribe will

exercise all rights and remedies with regard thereto.

Furthermore, your attempt to boot-strap Y-Travel into the 2003 Agreement and

then to use YTI as a pretext for invoking arbitration under the Agreement is misplaced.

Therefore, we consider the "Notice of Arbitration" to be void and of no effect.

We also assume that your January 31, 2011 letter refutes your previously

professed desire to re-open negotiation of the remaining agreements, which had been the

subject of extensive negotiation for over a year. Accordingly, any future correspondence

regarding this matter should be directed to my partner Paul Charlton or me.

Sincerely yours,

GALLAGHER & KENNEDY, P.A.

By:

Glen Hallman

GH:kjh 2663410/ 14434-15

cc: Teddy Parker

rage 1 01 j

Hallman, Glen

From: Thompson, Terence W.

Sent: Wednesday, March 24, 2010 10:07 AM

To: 'Teddy Parker'; Teddy Parker ([email protected])

Subject: Hualapai - Y-Travel shuttle on reservation

Teddy,

Per my voicemail late yesterday, it has come to the Tribal Council's attention that a company known as Y-

Travel (which is understood to be an affiliate of Mr. Jin) has been, or has commenced, operating a shuttle

service on the Hualapai Indian Reservation, As I'm sure you can appreciate, operations such as this on a

reservation require the prior approval of a tribe's governing body.

As such, the Council has asked that the Y-Travel shuttle operation cease as of today, Of course, Mr. Jin

should feel free to discuss this matter with the Council at the meeting next Tuesday.

Thank you for your courtesy and attention to this matter.

Best regards! -

Terry

Terence W. Thompson

Gallagher & Kennedy, P.A,

2575 E. Camelback Road

Suite 1100

Phoenix, Arizona 85016

Phone: 602-530-8515

Fax: 602-530-8500

E-mail: [email protected]

Web site: www.qknet.com

Attorney Profile

This message and any of the attached documents contain infonnation from the law firm of Gallagher & Kennedy, P.A.

that may be confidential and/or privileged. If you are not the intended recipient, you may not read, copy, distribute, or

use this information, and no privilege ha.s been waived by your inadvertent receipt. If you have received this

transmission in error, please notify the sender by reply e-mail and then delete this message, Thank you.

2/1/2011

Hallman, Glen

From: Thompson, Terence W.

Sent: Wednesday, March 24, 2010 12:03 PM

To: 'Teddy Parker1; Teddy Parker ([email protected])

Subject: Hualapai Tribe-Y-Travel

Attachments: skywalk transportation.pdf

skywalk

3nsportation.pdf (20

Teddy,

Following up on our telephone conversation just now, attached is the Y-Travel notice that came to the attention

of the Hualapai Tribe.

Pursuant to the direction of the Tribal Council, your letting GCSD or Y-Travel know that the Y-Travel

operation should cease immediately will be much appreciated,

Thank you! -

Terry

Walk, the Sky

C-rand Canyon 5kywafk ''d

To: All Employees

From; Skywalk Management

Date: March 6, 2010

Re? Peaeh Springs & Kfngrttan Transportation

Effective Tuesday, March 9lh 2010, Y-Travel will assume the responsibility for providing transportation (including a van and a driver) for the Peach Springs and Kingman employees. Please note the

following daily schedule from Y-Travel:

05; 50 AM arrive at the Lodge, Peach Springs A2

08:00 AM depart from the Lodge, Peach Springs AZ

06:45 AM arrive at the Wal-Mart parking lot near Auto-Zone

06:55 AM depart from the Wal-Mart parking lot

07:55 AM arrive at Sky Station switch into dirt road van

08:00 AM depart Sky Station

08:45 AM arrive at the Skywalk

17:00 (5:00 PM) depart the Skywalk

17:45 (5:45 PM) change vans at Sky Station

17:50 (5:50 PM) depart Sky Station

This time line is proposed and will be adjusted as needed.

*Note - Please see the following one-time procedure from Y-Travel for Monday, March 8lh 2010:

"Peach Springs employees drive van to Sky Station in the morning

"Kingman employees-drive van to Sky Station in tie morning

"Once at Sky Station, our driver will drive Peach Springs and Kingman employees to the Skywalk

*5.00 pm depart Skywalk', switch from dirt road van to Kingman van

We would like to sincerely thank each driver who has been able to help with the transportation needs in

the past! Going forward, the new process will heip each employee, supervisor, manager, and director focus more on the business and have less worry about transportation needs!

M_Peach Springs & Kingman "Transportation

ATTORNEY-CLIENT COMMUNICATION

ATTORNEY WORK PRODUCT

PRIVILEGED & CONFIDENTIAL

Gallagher & Kennedy P.A.

Law Offices

MEMORANDUM

TO: Hualapai Tribal Council

FROM: Glen Hallman, Paul Charlton and Terence W. Thompson

SUBJECT: Memorandum No. 4 - Exercise of Eminent Domain over Skywalk Agreement

DATE: February 11,2011

BACKGROUND

The Tribal Council has proposed to exercise its power of eminent domain1 with regard to the 2003 Development and Management Agreement between 'Sa' Nyu Wa, Inc. ("SNW") and

Grand Canyon Skywalk Development, LLC ("GCSD") (the "Agreement"). More specifically,

the Tribe proposes to condemn GCSD's interest in the Agreement.

This memorandum outlines the salient legal issues, analyzes strategic issues, and

addresses financial considerations.

A. THE TRIBE'S RIGHT TO EXERCISE THE POWER OF EMINENT DOMAIN.

The power of eminent domain is inherent in any Sovereign entity, such as the Tribe.

E.g., In the Matter of Richard A. Hennessy, Jr. v. Dimmler, 90 Misc.2d 523, 394 N.Y.S.2d 786

(N.Y. County Ct. 1977) (in a case dealing with a tribe's condemnation power, the court stated,

"The power of eminent domain is an incident of sovereignty....")

Article 9, Subsection (c) of the Constitution of the Hualapai Indian Tribe expressly states

that the Tribe may "take any private property for a public use," but states that it may not do so

"without just compensation."2

Also, there is an United States law which similarly recognizes the right of Indian tribes to

exercise the power of eminent domain. 25 U.S.C. § 1302 provides, in pertinent part:

No Indian tribe in exercising powers of self-

government shall -

1 A Sovereign's exercise of its inherent powers of eminent domain is often otherwise referred to as "condemnation" or "taking."

2 Article 5, Subsection (i) also gives the Tribe the power "to purchase or accept any land or property for the Tribe."

The disjunctive phrase "land or property" necessarily implies that "property" may be something other than "land,"

and GCSD's interest in the Agreement is a contract or property right.

ATTORNEY-CLIENT COMMUNICATION

ATTORNEY WORK PRODUCT

PRIVILEGED & CONFIDENTIAL

5. Take any private property for a public

use without just compensation....

The language in the Constitution of the Hualapai Indian Tribe and 25 U.S.C. § 1302

mirror the language of the Fifth Amendment of the United States Constitution: "private property

(shall not) be taken for public use, without just compensation."

Thus we may reasonably expect both the Hualapai Tribal courts and the United States

courts to apply established legal standards in addressing the Tribe's exercise of its powers of

eminent domain.

In short, the Hualapai Constitution and other legal authority indicate that the Tribe may

exercise the power of eminent domain.

B. THE RIGHT TO EXERCISE THE POWER OF EMINENT DOMAIN OVER THE

AGREEMENT.

Normally, the exercise of eminent domain is to obtain land (also known as "real

property"). Of course, the Tribe already owns the Skywalk, the Visitor Center and the

underlying land. So, the true "property interest" at issue here is GCSD's interest in the

Agreement, which is "intangible" property (that is, something which the human hand is not

capable of perceiving through the sense of touch).

However, there is ample precedent for the exercise of eminent domain over contract

rights such as GCSD's interest in the Agreement. Indeed, "many forms of corporate property are

subject to the eminent domain power, including intangibles such as contracts, franchises, patents,

trade routes, and other types of property as long as just compensation is paid for their

acquisition." Nichols on Eminent Domain, Ch. 22, § G22.03[3] (Matthew Bender, 3rd Ed.). See

also Cincinnati v. Louisville, 223 U.S. 390 (1912); New Orleans Gaslight Co. v. Louisiana Light

& MFG. Co., 115 U.S. 650 (1885); West River Bridge v. Dix, 47 U.S. 507 (1848). As stated in

M&C Council of Baltimore v. Baltimore Football Club, 624 F.Supp. 278, 282 (D. Md. 1986), "it

is now beyond dispute that intangible property is properly the subject of condemnation

proceedings."

A particularly good example is City of Oakland v. Oakland Raiders, which upheld the

right of the City of Oakland to exercise its eminent domain power to seize the Oakland Raiders'

football franchise, which was essentially a contract between the Raiders and the NFL. 32 Cal.3d

60, 183 Cal.Rptr. 673, 646 P.2d 8335 (1982).

C. THE REQUIREMENT THAT A TAKING BE "FOR A PUBLIC USE."

A Sovereign's exercise of the power of eminent domain requires that the taking be "for a

public use." The Agreement concerns the construction and management of the "Project,"

defined in Section 1.1 of the Agreement as follows:

3 25 U.S.C. § 1301 defines "Indian tribe" as "any tribe, band or other group of Indians subject to the jurisdiction of the United States and recognizing as possessing powers of self-government....

2662043

ATTORNEY-CLIENT COMMUNICATION

ATTORNEY WORK PRODUCT

PRIVILEGED & CONFIDENTIAL

"Project" means the Project Improvements,

the Site, all Furniture and Equipment, the

Inventories and all other items of real or

personal property used in connection with

the development, management and operation

of the Project.

"Project Improvements" are, in turn, defined as:

"Project Improvements" means the Glass

Bridge and adjacent building providing

security and structural support for the Glass

Bridge and will also contain a gift shop,

together with all related on and off site

improvements and infrastructure.

As these terms are generically described as the "Skywalk," this memorandum will

similarly refer to the "Skywalk." It is important to keep in mind that the Skywalk includes all of

the related infrastructure, including without limitation the Visitor Center and the associated

electricity, water, sewer and (possibly) roadway.

In the City of Oakland case, the franchise owner argued that the condemnation of the

franchise was not for a "public use," but the California Supreme Court held that a "public use is

a use which concerns the whole community or promotes the general interest in its relation to any

legitimate object of government." 32 Cal.3d at 69, 183 Cal.Rptr. at 679, 646 P.2d at 841. The

court went on to agree with the City's argument that "the factual circumstances surrounding the

construction of the Oakland coliseum and the integration of the past use of the stadium with the

life of the City of Oakland in general will readily demonstrate the "public" nature of the use

contemplated here." 32 Cal.3d at 75, 183 Cal.Rptr. at 683, 646 P.2d at 844.

Under the Agreement, ownership of the Skywalk lies with the Tribe. Thus the

Agreement concerns GCSD's construction and management of tribal property. Such being the

case, and while no one can predict what a court will do as to any particular issue, a court can

reasonably conclude that the exercise of eminent domain over GCSD's interest in the Agreement

would be for a "public use." To paraphrase the City of Oakland decision, the "integration" of the

Skywalk "with the life of the Haulapai Tribe demonstrates that the construction and operation of

the Skywalk is a 'public use.'"

D. THE NEED TO MAKE "JUST COMPENSATION" TO GCSD.

Under both the Tribe's Constitution and 25 U.S.C. § 1302, the taking of any private

property must be with "just compensation." This concept is quite similar to what is understood

to be the Hualapai custom of "fair trade."

In any eminent domain action, the determination of "just compensation" is the primary

issue in contention. Often, such a determination is quite complex, involving expert witness

testimony and sophisticated financial analysis. Given the numerous issues in dispute between

2662043

ATTORNEY-CLIENT COMMUNICATION

ATTORNEY WORK PRODUCT

PRIVILEGED & CONFIDENTIAL

the Tribe and GCSD under the Agreement, it can be expected that the valuation issues will be

even more complex than the typical condemnation case. A detailed analysis of all of the matters

in contention is beyond the scope of this memorandum, but are generally addressed in Section G

below.

The bottom line is that GCSD can be expected to present the strongest case possible that

its interests in the Agreement can only be taken with "just compensation" of $50 million or

more. It is anticipated the Tribe, through expert witnesses, should be able to present a

compelling argument that GCSD's "just compensation" (after various deductions or discounts)

should be a fraction of that number, perhaps as low as one-fourth or one-fifth. As described in

greater detail below, in our judgment a minimal or very, very low valuation would be unlikely to

survive the scrutiny of judicial review.

E. JUDICIAL JURISDICTION.

United States courts considering the Indian Civil Rights Act (25 U.S.C. §§ 1301 et. seq.)

have generally concluded that tribal and United States District courts have "concurrent

jurisdiction" over eminent domain cases. United States District courts have, in turn, generally

deferred exercise of their jurisdiction until the tribe and the adverse party have fully litigated all

matters in dispute in the Tribal courts. Thus, as discussed below, the Tribe may initiate eminent

domain proceedings in Tribal court but should expect GCSD's attorneys to seek redress in the

United States courts (or, alternatively, in a state court if the federal court feels that this is not a

federal case), either immediately or after completion of tribal judicial proceedings. See, e.g.,

Seneca Constitutional Rights. Org. v. George, 348 F.Supp. 51, 60 (W.D.N.Y 1972):

Plaintiffs . . . claim that condemnation of

their use interests would be a taking for

nonpublic use and without just

compensation. It is premature to raise these

claims [in federal court] prior to the

initiation of any condemnation proceedings.

Only after such proceedings are held and

their claims are raised and rejected therein

may they seek relief in the federal courts.

Thus, U.S. Constitution Fifth Amendment standards should govern a Hualapai Tribal

Court's condemnation proceedings, regardless of any countervailing Hualapai cultural norms or

laws.

Also, it appears that, after the exhaustion of remedies in the United States District courts,

either the Tribe or GCSD, or both, would then have the right to seek review of the District

Court's judgment by the United States Court of Appeals, and potentially the United States

Supreme Court. Thus, given the import of the Skywalk and the dollar amounts at issue, there is a

substantial chance that eminent domain proceedings will entail several layers of judicial review.

We now turn to strategic considerations.

2662043

ATTORNEY-CLIENT COMMUNICATION

ATTORNEY WORK PRODUCT

PRIVILEGED & CONFIDENTIAL

F. ADOPTION OF TRIBAL ORDINANCE REGARDING EMINENT DOMAIN.

To evidence that the Tribe is aware of and sensitive to "due process" and other rights, and

to provide guidance for the tribal court, it is highly recommended that the Council enact an

ordinance regarding eminent domain. Assuming the Council confirms that it wishes to proceed

with this course of action, we will prepare such an ordinance for Council review.

G. RECOMMENDED COURSE OF ACTION IN TRIBAL COURT.

Given the prospect of federal court review of any tribal court ruling, while the Tribe

could present a "bare bones" case in Tribal court and potentially obtain a minimal valuation of

"just compensation," such would not be in the Tribe's long-term best interest. Simply, unless

GCSD is indeed given a "fair trade" for its interests in the Agreement, the Tribe will leave itself

very vulnerable to reversal of that determination in the United States courts, pursuant to the

Indian Civil Rights Act (25 U.S.C. § 1302). Even if GCSD's attorneys are not successful in

convincing a United States District court to exercise jurisdiction immediately and to interfere

with the Tribal courts' condemnation proceeding, there is ample authority for United States

District courts reversing Tribal court determinations on a number of issues.

In our judgment the Tribe would be best served by presenting a compelling case for its

position on "just compensation" in the Tribal court, in order to make it as likely as possible that

the Tribal Court's determination withstands review by the United States courts.

We believe the Tribe will need to retain at least three outside consultants in connection

with any eminent domain proceeding.

First, the Tribe will need expert witness support for the valuation of "just compensation."

This will entail a sophisticated financial expert, such as a certified public accountant, to conduct

a detailed valuation of GCSD's interests under the Agreement. Because of the lengthy term of

the Agreement, GCSD's valuation would likely be the "present value" of its interests as of the

date of the initiation of the eminent domain proceeding. While the amount GCSD has invested

in the design and construction of the Skywalk is in dispute, it is conceivable that GCSD will seek

to put in evidence that the investment is in the range of at least $20 to $30 million and perhaps

even $50 million or more. The Tribe will seek to argue that it has offsetting claims against

GCSD and its affiliates, but the bottom line is that the Skywalk exists and has substantial

economic value and that, therefore, GCSD's contract to manage the Skywalk also has substantial

value.

We have experience with business valuation experts who have qualified as expert

witnesses in numerous judicial proceedings, and who can undertake the sophisticated, detailed

analysis of the value of GCSD's interest in the Agreement.

We also recommend that the Tribe retain someone with substantial experience in

governmental public relations. GCSD and its attorneys will almost certainly attempt to have the

Tribe's exercise of its powers of eminent domain portrayed to the public as an exercise of raw

"power" by the Tribe, with the Tribe taking for itself all future revenue associated with the

2662043

ATTORNEY-CLIENT COMMUNICATION

ATTORNEY WORK PRODUCT

PRIVILEGED & CONFIDENTIAL

Skywalk, after it was designed and constructed by GCSD. The Tribe will want to be able to

present itself as the more reasonable party in the eyes of the public at large.

Again, there are public-relations firms with which we are familiar and could seek to have

the Tribe retain for this purpose.

And third, the Tribe will need to make arrangements for a financing source for the

amount ultimately determined to be "just compensation." Thus the Tribe will want a financial

consultant to best explore the Tribe's available financing options.

H. COST CONSIDERATIONS,

Initiating eminent domain proceedings in Tribal court would entail minimal legal costs

and fees, but obtaining the initial appraisal can be expected to cost several thousand dollars.

Simply, like any other lawsuit, the litigation is commenced by the preparation and filing of a

Complaint. In eminent domain proceedings, there is also generally a request for the right to

"immediate possession", which, if granted by the court, would give the Tribe immediate control

over the Skywalk.

Thereafter, however, it can be expected that GCSD will put up a strenuous fight.

Assuming the Tribe is able to prevail on any objections to the condemnation power, public

purpose, and immediate possession, the only remaining principal matter at issue in the

proceeding would likely be the valuation of "just compensation." As discussed above, the Tribe

will need a sophisticated, qualified expert witness to present its position, and we will need to

coordinate with that expert witness to justify the lowest defensible value. This will entail more

substantial cost, both for counsel and the expert, but given the potential multi-million range, the

cost associated with the valuation process will be a very small fraction of that amount. Thus, in

our judgment it would not be prudent for the Tribe to not invest the necessary resources to put

together the strongest possible arguments for a valuation of $20 million or less.

Also, as discussed above, there is the potential for judicial proceedings in the United

States District Court, the 9th Circuit Court of Appeals, and conceivably even the United States

Supreme Court (or, alternatively, in a state court system). Thus it is impossible to estimate all

future litigation expenses or the length of time that the matter will continue, and even then there

can be no assurance of an ultimate outcome in favor of the Tribe. Like any other substantial

litigation, the ultimate costs depend upon the parties' respective positions and the manner in

which they litigate the issues. In addition to being represented by Mr. Parker, GCSD has now

retained a second law firm, Greenburg Traurig, which is a very large, national law firm, who will

be able to devote substantial resources (i.e., a team of attorneys and experts) to present its

position that "just compensation" should be $50 million or more. For the Tribe to prevail in its

contention that the dollar amount should be substantially less, the Tribe will need the strongest

possible case as well.4

4 Of course, as with any litigation, there is always the potential for a settlement, with GCSD and the Tribe

compromising on an alternative means of resolving their differences or on an intermediate valuation, to finally

resolve all matters in dispute. This, however, would require flexibility on the part of GCSD that has not heretofore

demonstrated.

2662043

ATTORNEY-CLIENT COMMUNICATION

ATTORNEY WORK PRODUCT

PRIVILEGED & CONFIDENTIAL

I. CONCLUSION.

While the law is unsettled in this area, it appears that the Tribe can effectively "buy-out"

GCSD's interest in the Skywalk through the exercise of the power of eminent domain.

Assuming the Tribe prevails in the exercise of its condemnation right, the Tribe will be legally obligated to provide GCSD "just compensation" therefor. There will be substantial costs

associated with litigating both the Tribe's right to condemn GCSD's interests in the Agreement

and the value of GCSD's interest, but those costs should be a small fraction of the total dollar

amount at issue between the parties.

Such a course of action would be a substantial undertaking, but given the import of the

Skywalk to the Tribe as a whole and the long patience displayed by the Tribal Council in trying

to resolve issues by other means, it seems the Tribal Council would be fully justified in so

proceeding.

2662043


Recommended